The National Treasury has announced a new opportunity for government employees aged 55 to 63 to retire early without pension penalties, as part of efforts to manage the public wage bill and rejuvenate the civil service....Click to Read More >>➤

The initiative, available through the Incentivised Early Retirement Programme (ERP) and the Public Service Voluntary Exit Programme (VEP), allows eligible workers to exit the public sector with financial benefits while maintaining their full pension value.

According to Treasury, both programmes are designed to reduce the wage bill in a humane and strategic way — avoiding retrenchments while creating space for younger professionals to enter public service.

Applications opened on 15 October 2025 and will close on 30 November 2025, giving interested employees a limited window to apply.

The offer covers workers in departments governed by the Public Service Act, including teachers, members of the South African Police Service (SAPS), intelligence officers, and defence personnel.

Incentivised Early Retirement Programme (ERP)

The ERP targets public servants aged 55 to 59 with at least ten years of pensionable service. Qualified applicants can retire early under Section 16(6) of the Public Service Act without facing pension penalties.

They will also receive a financial incentive calculated as follows:

• Two weeks of basic salary per year of service for the first 20 years, and

• One week of salary per completed year of service thereafter.

Final approval will depend on the executive authority of each department, who will consider operational requirements before granting the request.

Directors-General and department heads are also eligible, though employees with less than ten years of service, as well as contract or temporary workers, do not qualify.

Public Service Voluntary Exit Programme (VEP)

The VEP is aimed at employees aged 60 to 63 who wish to leave before reaching the normal retirement age while retaining their full pension benefits.

Applicants must be permanent employees with at least ten years of pensionable service. Under the VEP, successful applicants will receive an incentive calculated as:

• Two weeks of salary per year for the first ten years, and

• One week of salary for each additional year thereafter.

The National Treasury will handle pension payments in line with Government Employees Pension Fund (GEPF) rules, ensuring that no penalties are applied. Departments will fund the exit packages from their allocated budgets, with clear guidelines and oversight in place.

Application Guidance

Treasury has advised interested employees to check their pension estimates early, confirm their incentive details with their HR departments, and submit applications before the 30 November 2025 deadline.

Authorities have emphasized that this is a once-off opportunity, and the programmes will not automatically extend into the next financial year unless a formal extension is announced.

This move forms part of a broader fiscal reform to balance sustainability with fairness, ensuring that experienced employees can exit the workforce gracefully while the public sector attracts new talent for future service delivery. ...Click to Read More >>➤